New Zealand Introduces Online Casino Gambling Bill to Regulate iGaming Sector

New Zealand has taken a significant step toward regulating its iGaming sector with the introduction of an online casino bill. This bill, tabled in Parliament by Brooke van Velden, New Zealand’s Minister of Internal Affairs, marks the government’s first deliberate attempt to bring clear regulations to an industry that has long operated in a legal grey area.

Although the legislation has not yet been passed, many within the iGaming community anticipate that it will come with notable restrictions. Under the current Gambling Act, online gambling is prohibited domestically. However, that hasn’t stopped citizens from visiting offshore platforms, including Australian crypto sites, which offer a wide variety of games, generous sign-up bonuses, loyalty programs, and fast withdrawals. Many of these platforms are appealing due to the enhanced speed and efficiency that digital payment methods provide, as well as the convenience of accessing them from anywhere.

If passed, the new law would usher in a new era for online gambling in New Zealand by creating a controlled licensing framework. This would aim to protect users while generating tax revenue for the government under regulated conditions.

The proposed bill would authorize up to 15 online casino operators between 2026 and 2029. Interested operators would apply through the office of the Secretary of Internal Affairs. The process would involve a competitive evaluation of each applicant’s financial capacity, operational plans, and compliance readiness.

Successful applicants would need to submit a final plan detailing their commitment to government policies, advertising rules, and consumer protection measures. Licenses would be valid for three years, with the option to renew for five more, and must be activated within three months to prevent anti-competitive behavior. Operators would be limited to three licenses, each tied to a specific platform or brand.

The bill mandates robust age verification and identity checks to prevent underage gambling. It also clearly defines legal gambling activities, which include online casino games such as poker, table games, and slots. Sports betting and racing are excluded unless they are virtual games where outcomes depend solely on chance.

Casinos operating without licenses would face heavy penalties, while licensed operators breaching regulations could be fined up to NZD 5 million (AUD 4.57 million). For the first three years, licensing fees would be set at 12% of the operator’s gross gambling revenue.

While not yet law, the government aims to implement the licensing program by the end of this year. Before that, the bill will undergo committee review, where citizens can provide input on key issues like advertising limits and responsible gambling initiatives. If enacted, this legislation could significantly reshape New Zealand’s gambling landscape, bringing it in line with global regulatory trends.